Dhoot Transmission IPO: 30% Listing Gain Expected

 Dhoot Transmission IPO opened on August 10 with a ₹829-871 price band and a grey market premium of ₹259.

The Dhoot Transmission IPO was launched for subscriptions on August 10, 2026, with its popularity gaining traction owing to the significant grey market premium and the expanding role of the company in the EV ecosystem.

The ₹3,066.89 crore public offering would be accessible till August 12. The price band of the IPO of Dhoot Transmission has been determined by the company at ₹829-₹871.

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With a grey market premium (GMP) of about ₹259, the Dhoot Transmission IPO can be listed for ₹1,130 if the GMP stays at this level and the shares get listed near the higher end of the estimated price range. This would mean a rise of around 30% above the higher issue price.

It must be noted that the grey market premium does not reflect any official estimate of listing prices.

Key Points regarding Dhoot Transmission IPO

There has been a huge response to the IPO even before the public subscription opens from institutional investors. The company has managed to raise ₹918.27 crore from 72 anchor investors at the rate of ₹871 per share, which is the top of the price range.

There is a lot of investor interest due to the increasing Indian automotive & EV components market.

EV Opportunities at Dhoot Transmission

Dhoot Transmission is engaged in the manufacture of wiring harnesses and a variety of electrical and electronic components that go into automobiles. The list of the product portfolio includes wiring harnesses, battery packs, sensors, electronic controllers, switches, terminals, and connectors.

It makes components for both the conventional internal combustion engine automobiles and the electric automobiles. This provides Dhoot Transmission an opportunity not only in the general automotive industry but also in electric vehicles' growing market.

The company is well known for its two-wheeler and three-wheeler wiring harnesses. As per the information given in its IPO details, the company held about 41% market share in this particular category.

The company has strong presence in the electric two-wheelers and three-wheelers. It held approximately 70% market share in this category as of FY26 as per the information given by the company in its IPO details.

About 95% of the automotive product portfolio of the company is EV-focused or powertrain-neutral. The company is also venturing into products like battery assemblies, DC-DC converters, onboard chargers and charging guns.

Financial Performance of Dhoot Transmission

The financial performance of the organization has also seen substantial growth.

The total income of Dhoot Transmission grew by 31% to ₹4,563.70 crore in FY25 from ₹3,472.24 crore in the last financial year.

There was an increase in the profit after tax by 12% to ₹396.84 crore from ₹353.89 crore in FY25.

There are some other things like the expansion plans of the organization which must be considered by investors while analyzing the IPO.

Where Will Funds From Dhoot Transmission IPO Be Utilized?

Some amount will be utilized for paying off the debts and boosting the strength of subsidiaries of the company.

About ₹464.80 crore will be used either for repayment or prepayment of debts of certain nature. About ₹301.77 crore will be used for investments in subsidiaries in order to assist them in paying off their debts.

Approximately ₹150 crore will be invested by the company in setting up new manufacturing plants for wiring harnesses at Jhajjar in Haryana and Shoolagiri, Hosur in Tamil Nadu.

Shall You Subscribe For The Dhoot Transmission IPO?

There are some favorable aspects to the IPO of Dhoot transmission that include high revenue growth, increased adoption of EVs, good presence in electric two-wheelers and three-wheelers, and a good response from pre-IPO anchor investors.

The good GMP of ₹259 suggests positive sentiments about the listing of the stock.

However, it is important for investors to note that grey market premium is volatile in nature, while the listing price will depend upon various factors.

Hence, it is advised for investors to analyze various aspects of the company such as performance, valuation, debt, etc. before making any investment decision.